GST on Mixed Supply of Goods and/or Services

Supply of individual goods or individual services which is clearly identified are subject to GST at a specified rate. However, in business you can have situations where supply of goods and/or services are not clearly identifiable. In certain cases, you will find supply is a mix of different goods or combination of different services or combination of both goods and services. In such cases, you can not levy GST as you will find different rates for each of these identifiable goods or services. Due to this reason, GST law has specifically talked about composite supplies and mixed supplies.

In this article we will be discussing what is mixed supply and how rate of GST is determined in case of mixed supply under GST law. If interested, you can read our article on composite supply of goods and/or services.

What is mixed supply?

As per section 2(74) of CGST Act, 2017, mixed supply means two or more individual supplies of goods and services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Therefore, the most important point is that a supply can be a mixed supply only when it’s not a composite supply.

Following conditions are important to determine whether a supply is mixed supply under GST or not;

  • It’s not a composite supply.
  • Supplies are not naturally bundled in the ordinary course of business.
  • Individual supplies are independent of each other.

Rate of GST in case of mixed supply

According to section 8 of CGST Act, 2017, in case of a mixed supply comprising two or more supplies shall be treated as supply of that particular supply that attracts the highest rate of tax.

Which means, if two individual supplies are bundled together then, the supply that attracts the highest rate of GST will be charged on the total value of both the supplies together.

For example, Cadurry & associates has supplied a package consisting of sweets, chocolates, cakes, dry fruits and juice for a single price as a mixed supply in the eve of christmas. In this case each of these items can be supplied differently, but Cadurry & associates has supplied it as one. Therefore, in this case, it will be considered as mixed supply and the item with the highest rate will be charged on the total value as GST.

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.